ENGIE invests $6mn in energy storage startup
French energy giant becomes the largest strategic investor in California-based firm.
ENGIE has invested $6mn in Advanced Microgrid Solutions (AMS), a California-based startup specialised in energy storage, through its Corporate Venture Fund ENGIE New Ventures.
This investment makes the company formerly known as GDF Suez the largest strategic investor in AMS and will expand the company’s efforts to develop the first comprehensive B2B energy storage solution.
AMS offers energy storage solution to utilities, tapping into large, concentrated building loads to reduce the load on the grid when dispatched by the utility.
Participating businesses benefit with reduced energy costs and enhanced reliability by shaving peak energy demand by as much as 25%.
AMS landed one of the first and largest utility contracts for energy storage in the U.S. and is building 50 MW of B2B energy storage projects for Southern California Edison, a U.S. utility company.
Using Tesla energy storage systems, these projects will become the first hybrid-electric building fleets used for grid support in the world.
In a market, which could represent $6mn in 2020, AMS expects its business to grow at a rapid pace in the four years to come. ENGIE will focus its full support to expand AMS solutions in the U.S. market and overseas.
Isabelle Kocher, Executive Vice-President and Chief Operating Officer at ENGIE, said “This is a fantastic opportunity to join forces with AMS and developing valuable storage solutions for our B2B customers. Renewable energy is taking a lead worldwide and with advanced energy storage technology we can both solve the problem of intermittency and make the grid more resilient.”
Susan Kennedy, Founder and CEO of AMS, said “Having ENGIE as a strategic partner will give AMS the strength and expertise to grow our business in the US and internationally. ENGIE’s focus on clean energy, storage-as-a-service and grid resiliency make them one of the most valuable players to enter the energy storage space today.”